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CBRE and Paragon Commercial Group LLC announced the record-setting sale of a 12,715 square-foot retail property in Los Angeles to Millenium Investment LLC for $8.2 million or just over $640 per square foot.

CBRE’s Senior Vice Presidents Alex Kozakov and Patrick Wade represented the seller, Paragon Commercial Group, in the transaction. Paragon, a fully integrated retail development group based in Southern California, spent years in the assemblage and entitlement of the property in the high-barriers-to-entry submarket of East Los Angeles.

“This sale is the most recent example of Paragon’s successful California-based value-add retail strategy,” said Erwin Bucy, Principal at Paragon. “One of the most rewarding parts of retail is being able to bring great tenants to underserved parts of our community, and concurrently create value for our investors. This was one of those great experiences.”

Located at 3627 East Cesar E Chavez Avenue, the property is leased to a CVS Pharmacy and is situated less than 3 miles from Downtown Los Angeles with a population density of more than 300,000 people within a 3-mile radius.

“This property is across the street from a high-volume grocery store,” said Kozakov. “It is also situated within a high-traffic area with incredible population density in a market with extremely high barriers to entry.”

The duo connected the buyer with CBRE’s debt and structured finance experts Val Achtemeier and Ed Balazs to help facilitate the transaction. Kozakov and Wade also represented the buyer, a private Orange County-based investor in the 1031-exchange.

Demand for retail properties in the Greater Los Angeles area is strong. The area’s large and diverse population and solid fundamentals have been supporting increasing leasing activity, and occupancy levels are expected to remain steady over the next 12 months. Rents are projected to increase an additional 1.3 percent.